Ruto’s Ksh3.7 Trillion Budget Increased 4 Months After Being Unveiled
President William Ruto’s initial budget, which was initially projected at Ksh3.74 trillion, was swiftly revised to Ksh3.9 trillion on June 15, less than four months after Treasury Cabinet Secretary Njunguna Ndungu introduced it.
On Friday, the Treasury notified the Public Debt and Privatization Committee (PBC) of the modifications, confirming that its Principal Secretary, Chris Kiptoo, had previously disclosed the information during a Parliamentary Budget Office (PBO) hearing.
As stated by PS Kiptoo, the augmentation in funding was prompted by rising expenditures in state departments, including the Ministry of Education.
The majority of the increased budget was designated for the implementation of the new funding model, which specifically targeted students enrolled in Technical and Vocational Education and Training (TVET).
Additional funds were directed towards the Open University, an institution that Ruto inaugurated on August 3.
“The Ministerial expenditures have been adjusted upwards by Ksh83.76 billion in gross recurrent expenditures and reduced by Ksh41.97 billion in gross development expenditure.
ALSO READ:
- Why Kenyan economy is struggling – Ledama
- KRA Sets Auction Date of Unclaimed Goods at Moi and Eldoret Airports
“The increase in recurrent expenditures is driven towards a rise in Appropriation-in-Aid collected by Public Universities and provisions for statutory requirements like the Housing Levy,” read the statement in part.
In contrast, the budgetary allotment designated for development initiatives was diminished by Ksh40.9 billion, with the State Departments of Housing, Urban Development, and Roads bearing the brunt of the reduction.
This is by the presidential order that Cabinet Secretaries decrease their ministerial allocations by 10 percent.
Kiptoo elaborated on the debt situation in Kenya, stating that from July to September, the nation’s debt portfolio grew by Ksh310 billion to Ksh10.58 trillion.
The appreciation was ascribed to the Kenyan shilling’s depreciation about the dollar.
“Kiptoo also stated that the net external financing in the FY 2023/24 Supplementary 1, has been revised upwards by Ksh412.1 billion, due to new sources of external concessional financing from multilateral agencies and the increased cost of domestic borrowing, while the net domestic financing has been revised downwards to Ksh449.2 billion,” read the statement in part.
Ruto’s Ksh3.7 Trillion Budget Increased 4 Months After Being Unveiled
